first quarter results 2011...4.8 4.8 4.8 4.9 4.9 npa ratio bbva spain vs local peer group (1) mar.11...

1Q11 Results / May 5th 2011

Ángel Cano, BBVA's President & COO

First quarter results 2011

1

May 5th 2011


DisclaimerThis document is only provided for information purposes and does not constitute, nor must it be interpreted as, an offer to sell or exchange or acquire, or

an invitation for offers to buy securities issued by any of the aforementioned companies. Any decision to buy or invest in securities in relation to a specific

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modifications.

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Act of 1995) regarding intentions, expectations or projections of BBVA or of its management on the date thereof, that refer to miscellaneous aspects,

including projections about the future earnings of the business. The statements contained herein are based on our current projections, although the said

earnings may be substantially modified in the future by certain risks, uncertainty and others factors relevant that may cause the results or final decisions

2

earnings may be substantially modified in the future by certain risks, uncertainty and others factors relevant that may cause the results or final decisions

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Restrictions.


Different economies

Emerging Developed

Slow recovery

3

Engines of global

growth

Slow recovery

Differences between

regions


Contents

1 Group Highlights

4

2 Geographical areas


1Q11 highlights

1Q11 earnings are higher than 3Q10 and 4Q101Q11 earnings are higher than 3Q10 and 4Q10

Fifth consecutive quarter of improvement in risk indicators

11

22

5

Core capital ratio of 8.9% after incorporating Garanti

Record gross income in Mexico and South America

Franchises strengthened in developed economies

33

44

55


Strong earnings

Net attributable profitBBVA Group(€m)

Growth plans in expanding

Good performance of revenues

Highlights

-7.3%

+22.5%

6

1,150

939

1,1401,240 1,287

1Q10 2Q10 3Q10 4Q10 1Q11

Growth plans in expanding franchises

Risk premium improves

Performance of emerging economies


Resilience of net interest income …

Net interest incomeBBVA Group(€m)

-6.2%

+1.2%

Resilience

• Buoyant activity in

emerging economies

7

3,3863,551

3,2453,138 3,175

1Q10 2Q10 3Q10 4Q10 1Q11

emerging economies

• Slower decline in

developed economies

Good performance by emerging economies offsets decline in developed markets


... and good performance of other revenue sources

Gross incomeBBVA Group(€m)

-0.7%

+6.4%•Markets activity

• Portfolio sales in the Americas

High NTI in quarter

8

Additional generic allocation of €175M

• Portfolio sales in the Americas

5,3015,579

5,084 4,9465,263

1Q10 2Q10 3Q10 4Q10 1Q11


Costs are in line with our growth plans ...

CostsBBVA Group(€m)

+11.4%

+1.4%

Investment: +15.9%

Depreciation: +11.2%

Technology

9

2,118 2,262 2,262 2,325 2,359

1Q10 2Q10 3Q10 4Q10 1Q11

Distribution capability in

emerging markets

Staff Branches ATMs

+3,710Yr-on-yr

+67Qtr-on-qtr

+1,181Yr-on-yr


... and improvement in risk premium

Loan-loss provisionsBBVA Group (€m)

-2.1%

-3.0%

Cumulative risk premiumBBVA Group (%)

10

1,044

1,306

1,1591,054 1,022

1Q10 2Q10 3Q10 4Q10 1Q11

1.2%

1.3%

1.5%

2009 2010 1Q11


In summary, very resilient earnings ...

Income statementBBVA Group(€m)

1Q11 / 4Q10

Growth

1.2%

%

Accum.1Q11 / 1Q10

%

-6.2%

Abs.1Q11

- 2113,175Net Interest Income

BBVA Group

11

ROA 0.95% ROE 12.8%

42.9%

22.5%

10.8%

1.2%

6.4%

-6.2%- 211

Operating IncomeM A R G E N N E T O

2,904

3,175

M A R G E N B R U T O

Net Interest Income

Gross Income - 38 -0.7%

Net Attributable ProfitR E S U L T A D O A T R IB U IB L E A L G R U P O

1,150 - 90 -7.3%

Income Before TaxR E S U L T A D O S A N T E S D E IM P U E S T O S

1,659 - 203

- 279

5,263

-8.8%

M A R G E N D E IN T E R E S E S

-10.9%


… well balanced by geographies

Gross income by geographies*BBVA Group(%)

Net attributable profit by geographies*BBVA Group(%)

Spain

USA

Spain

South

America

USA

33.7%

11.5%

32.4%19.0%

5.5%

12

* Excludes Corporates Activities

EurAsia

Mexico

South

America

Spain

EurAsiaMexico

America

Emerging 52%

Developed 48%

Emerging 57%

Developed 43%

33.7%

6.4%

27.4%

21.1%

32.4%

13.5%29.6%

19.0%

Break down * Break down *


1Q11 earnings are higher than 3Q10 and 4Q10

1Q11 highlights

11

22 Fifth consecutive quarter of improvement in risk indicatorsFifth consecutive quarter of improvement in risk indicators

13

Core capital ratio of 8.9% after incorporating Garanti33

44

55




Decreases in NPA balances …

Balance of NPABBVA Group(€bn)

Gross additions to NPABBVA Group(€m)

Net additions to NPABBVA Group(€m)

-23.5%-61.4%

14

2,685

1,036 922

Ave qtr2009

Ave qtr2010

1Q11

15.916.1

15.515.6 15.7

Mar.10 Jun.10 Sep.10 Dec.10 Mar.11

4,3163,302

2,804

Ave qtr2009

Ave qtr2010

1Q11

-15.1%

-23.5%

-11.0%

-61.4%


NPA & coverage ratiosBBVA Group(%)

Specific risk premium accum. BBVA Group (%)

... and improvement in risk indicators

1.9%Coverage ratio

15

6159 61 62 62

4.1 4.3 4.2 4.1 4.1


1.0%

1.4%

1.9%

2009 2010 1Q11

NPA ratio

Coverage ratio


1Q11 highlights


22 Fifth consecutive quarter of improvement in risk indicators

16

33

44

55

Core capital ratio of 8.9% after incorporating GarantiCore capital ratio of 8.9% after incorporating Garanti




Capital base strengthened

Core capital ratioBBVA Group(%)

Core Capital

8.9%8.9

9.6 +0.2

-1.1

+0.2

17

Tier 1 9.8 %

BIS Ratio 13.0%

Capital

Moody´s confirm Aa2 rating

4Q10 Organic

generation

Dividend

option

Garanti &

other

effects

1Q11

-1.1


Solid financial and liquidity positions

Customer funds euro: +11.7% year-on-year

70% of euro maturities in 2011 are already covered

18

$2 billion issue in Mexico

Additional €62 billion available in collateral at euro level

70% of euro maturities in 2011 are already covered



1Q11 highlights

11


19

33

44

55


Record gross income in Mexico and South AmericaRecord gross income in Mexico and South America



Emerging markets: strong growth

Vigorous business . . .

Mexico South America

Customer funds*

Lending* +14.0% +28.6%

+8.6% +15.9%* Average balances

20

Record gross income in Mexico, South America and Asia

Net attributable profit

Mexico S. Amer. Asia Turkey

Gross income €1,437M(+4.3%)

€1,106M(+16.4%)

€147M(+96.8%)

€24Mn.a.

€436M(+17.3%)

€280M(+17.5%)

€116M(+123%)

€12Mn.a.

. . . is boosting earnings to record levels


1Q11 highlights



21

33

44

55



Franchises strengthened in developed economiesFranchises strengthened in developed economies


Developed markets: franchises strengthened

Focused growth

Spain USA

160

35Residential

mortgages

Private

sector

deposits20

11

8980

+9%

-43%

Non construction

Compass BG – loan portfolio(%)

Market share gainsFeb.11 vs Feb.10(bp)

Construction

YoY change

22

The risk profile improves

Spread management

deposits20

11

Mar.10 Mar.11

-43%

•Slower decline in net interest income

•Customer spreads during quarter: +14 bp

•Customer spreads: +17 bp yr-on-yr

0.7%1.0%

1.5%

2009 2010 1Q11

1.1%

1.7%

3.3%

2009 2010 1Q11

Specific risk premium accum. Risk premium accum.


1. Strong earnings Net attributable profit: €1.15 billion1Q11 net interest income is higher than 4Q10

2. Risk indicators improveNPA ratio: - 3 bpRisk premium accum: -13 bpNet additions to NPA: -11 %

In summary . . .

23

3. Strong balance sheet70% of euro maturities in 2011 already coveredEuro customer funds: +11.7% yr-on-yr

4. Strong growth in emerging economies

Record gross income in Mexico, South America and in Asia

5. Outperforming the sector average in developed economies

Market share gains in Spain and firmer fundamentals in USA


Contents

1 Group Highlights

24

2 Geographical areas


Changes in the reporting structure

Regional perspective

Rest of Rest of Rest of Rest of

EurAsia• More consistent with business

• More comparable

Reasons

25

SpainSpainSpainSpainRest of Rest of Rest of Rest of EuropeEuropeEuropeEurope

AsiaAsiaAsiaAsia

Mexico*Mexico*Mexico*Mexico*South South South South

America*America*America*America*United United United United States*States*States*States*

• More comparable

• Incorporation of new regions (Garanti)

• Global reporting of WB&AM

* Areas not affected by the change in reporting structure


Geographical areas: highlights

Spain

EurAsia

Slower rate of decline in net interest income, market share gains and superior risk indicators

Growing contributions from strategic investments in China and Turkey, and from wholesale business in Europe

26

Mexico

South America

United States

Strong business activity results in record revenues and risk stabilises

Dynamic activity, main margins at record levels and the best risk indices in the Group

Positive signs of business activity with a better mix and a jump in attributable profit

WB&AMRevenues are recurrent and more diversified, reflecting a stronger customer franchise


1,1031,045 1,021

1,182

Spain: positive dynamics lead to slower decline in net interest incomeCost of gathering time deposits vs 12-mth euriborVariation Mar.11 vs 2010 maximum(Basis points)

Net interest income excluding Markets Quarter-by-quarter (€m)

Decline in net interest income slows

71

-89

12-mth

euribor

Cost of

new time

deposits*

27

1,045 1,021

2Q10 3Q10 4Q10 1Q11

Spreads on new business originationVariation Mar.11 vs 2010 minimum(basis points)

From less to more in the second half of 2011

* Retail + CBB

Customer spread: +14bp in the

quarter74

69

109

45

C&IB

CBB

Consumer

Resid.

mortgage

1,252 1,178 1,143 1,109Interest income


Spain: market share gains in key items continue

Lending Average balances .Year-on-year variation(%)

-0.7%

Mar.10 Mar.11

14.3%

16.1%

Mkt share of new residential mortgages(%)

+186 bp

Mkt share of stock13.3%

28

-2.6%Jan.-Feb. 10 Jan.-Feb.11

Customer funds on balance sheet (Average balances .€m)

83,231

105,141

Mar.10 Mar.11

+ 26.3%

Mkt share of stock: +35 bp

8.5%10.1%

Feb.10 Feb.11

Mkt share private sector deposits(%)

+160 bp


4.84.84.84.94.9

NPA ratioBBVA Spain vs local peer group (1)

Mar.11 vs Mar.10(basis points)

Spain: outperforming in risk indicators for another quarter

NPA ratio and specific risk premium accum. (%)

NPA ratio

29

4.84.84.8

0.71.00.90.90.7


Plus €175M allocation to generic provisions

86

-12BBVA Spain

Ave. for local

peer group

(1) Local peer group:(1) Local peer group:(1) Local peer group:(1) Local peer group: BANKIA, BTO, BKT, CAIXA, B. CM, POP, SAB and SAN. Latest available data used where there is no figure for Mar.11....

Specific. risk premium


Spain: income statement

(€m)

1Q11 / 4Q10SpainAccum.

Growth

1Q11 / 1Q10

1Q11 Abs. % %

30

27.3%Net Attributable ProfitR E S U L T A D O A T R IB U IB L E A L G R U P O

477 - 238 -33.3%

32.4%Income Before TaxR E S U L T A D O S A N T E S D E IM P U E S T O S

672 - 336 -33.3%

24.8%

10.9%


1,062 - 176 -14.2%

-3.0%

Gross IncomeM A R G E N B R U T O

1,767 - 162 -8.4%

Net Interest IncomeM A R G E N D E IN T E R E S E S

1,109 - 195 -14.9%


EurAsia: buoyant business in both areas

Rest of Europe - gross income(€m)

164

191

Europe - organic

Turkey12%

88%

EurAsia - breakdown of net attrib. profit(%)

Yr-on-yr

Yr-on-yr

change

31

Asia - gross income(€m)

106

147

Ave qtr 2010 1Q11 Breadown

1Q11

85%

15%

CITIC

Asia - organic

Ave qtr 2010 1Q11 Breadown

1Q11

41.4%

Asia Rest of Europe

+14%

+123%Yr-on-yr

change

change

58.6%


(€m)

EurAsia: income statement

1Q11 / 4Q10

Gross Income 337 + 108 47.0% 0.1%


104 + 23 28.6% 6.5%

EurAsiaAccum.

Growth

1Q11 / 1Q10

1Q11 Abs. % %

32

Net Attributable ProfitR E S U L T A D O A T R IB U IB L E A L G R U P O

198 + 74 60.0%

25.3%

17.0%

Income Before TaxR E S U L T A D O S A N T E S D E IM P U E S T O S

226 + 77 51.3%

Gross Income


249 + 90 56.4% -3.0%

M A R G E N B R U T O

337 + 108 47.0% 0.1%


Mexico: surge in business

14.0%

0.5%

6.4%

13.1%9.5%

9.1%8.2%

7.1%

8.6%


LendingAverage balances .(Year-on-year change.%)

Customer fundsAverage balances . (Year-on-year change.%)

33

New business by product/segment(Year-on-year change.%)

-3.3%



5.6%

9.6%

14.9%

8.2%

16.8%

Mortgages* Consumer +

cards

CBB loans Transactional Mutual funds

* Excluding old residential

Market share gains in main items


Mexico: improvement in risk premium

NPA & coverage ratios(%)

Provisions(Constant €m)

Cumulative risk premium(%)

-12,6%

34

131131131131 136136136136150150150150 152152152152

136136136136

4.14.14.14.1 3.83.83.83.8 3.43.43.43.4 3.23.23.23.2 3.23.23.23.2


Coverage ratio

NPA ratioNPA ratioNPA ratioNPA ratio 3.6%3.9%

4.1%

4.3%

3.4%


354

310

1Q10 1Q11


Mexico: in summary, strong results

Gross income(Constant €m)

Net interest income(Constant €m)

+5.1% +4.3% +17.3%

Net attributable profit(Constant €m)

35

Record revenues and sharp increase of bottom line

920967

1Q10 1Q11

1,378

1,437

1Q10 1Q11

371

436

1Q10 1Q11


Mexico: income statement

(Constant €m)

1Q11 / 4Q10

0.8%Net Interest Income 967 + 47 5.1%

MexicoAccum.

Growth

1Q11 / 1Q10

1Q11 Abs. % %

36

-5.5%Net Attributable ProfitR E S U L T A D O A T R IB U IB L E A L G R U P O

436 + 64 17.3%


595 + 75 14.5%

2.1%

2.9%


916 + 17 1.8%

0.8%


1,437 + 59 4.3%


967 + 47 5.1%


South America: buoyant business

22.9%

16.0%

7.3%

28.6%

15.9%17.3%13.7% 14.1%

18.1%

LendingAverage balances .(Year-on-year change. %)

Customer fundsAverage balances .(Year-on-year change. %)

37

-0.5%

Mar.10 Jun.10 Sep.10 Dec.10 Mar.11Mar.10 Jun.10 Sep.10 Dec.10 Mar.11

9

59

Deposits

Loans

Market Share Change: Feb.11 vs Feb.10(basis points)

Market share gains in main

items


132132132132 133133133133139139139139

130130130130134134134134

South America: best risk indicators in the BBVA Group

Loan-loss provisions(Constant €m)

NPA & coverage ratios (%)

Coverage ratio+8,5%

38

132132132132 133133133133130130130130

134134134134

2.82.82.82.8 2.72.72.72.7 2.42.42.42.4 2.52.52.52.5 2.52.52.52.5

Mar.10Mar.10Mar.10Mar.10 Jun.10Jun.10Jun.10Jun.10 Sep.10Sep.10Sep.10Sep.10 Dec.10Dec.10Dec.10Dec.10 Mar.11Mar.11Mar.11Mar.11

1.7% 1.6%

NPA ratio

Risk

premium

110119

1Q10 1Q11


South America: in summary, excellent results

Net interest income(Constant €m)

+23.5% +16.4% +17.5%


Net attributable profit(Constant €m)

39

562

694

1Q10 1Q11

950

1,106

1Q10 1Q11

238

280

1Q10 1Q11

Record level of main lines


South America: income statement

(Constant €m)

1Q11 / 4Q10

7.5%Net Interest Income 694 + 132 23.5%

South AmericaAccum.

Growth

1Q11 / 1Q10

1Q11 Abs. % %

40

48.0%Net Attributable ProfitR E S U L T A D O A T R IB U IB L E A L G R U P O

280 + 42 17.5%


503 + 49 10.9%

22.0%

13.7%


639 + 62 10.7%

7.5%


1,106 + 156 16.4%


694 + 132 23.5%


United States: optimising the portfolio mix in terms of lending ...

New business origination *Change: 1Q11 vs 1Q10(%)

20 11

8980

Loan portfolio *(Average balances. %)

44.3

102.9 99.5+9%

-43%

Construction

Non

Construction

Yr-on-yr

change

41

20 11

Mar.10 Mar.11 Companies Consumer Res. mortgage

-43%

... and customer funds, with better spreads

23 27

7377

Mar.10 Mar.11

Customer funds *(Average balances. %)

+13%

-4%

Unremunerated

Remunerated

Customer spread *(%)

3.75

3.92

1Q10 1Q11

Yr-on-yr

change

* Compass BG


United States: decrease in risk premium

Provisions(Constant €m)

NPA - balance (€m)

171

357

2,068

- 12.1 %

42

3.3% 1.7%

4.4% 4.5%

56% 64%

Cum. risk

premium

NPA ratio

Coverage

106

171

Ave qtr

2009

Ave qtr

2010

1Q11

1.1%

2009 2010 1Q11

1,817

1Q10 1Q11


United States: income statement

(Constant €m)

1Q11 / 4Q10

-0.7%Net Interest Income MARGEN DE INTERESES402 - 38 -8.6%

USAAccum.

Growth

1Q11 / 1T10

1Q11 Abs. % %

43

n.a.Net Attributable ProfitR E S U L T A D O A T R IB U IB L E A L G R U P O

81 + 26 47.5%

n.a.Income Before Tax RESULTADOS ANTES DE IMPUESTOS114 + 33 40.8%

12.8%

4.1%

Operating Income MARGEN NETO229 - 26 -10.3%

-0.7%

Gross Income MARGEN BRUTO604 - 12 -1.9%

Net Interest Income MARGEN DE INTERESES402 - 38 -8.6%


Wholesale Banking: recurrence and diversification of revenues

66%

34%

Gross income by type of economy(%)


Emerging

829

653 652 685

811

-2.2%

+18.5%

44

66%

Developed

1Q10 2Q10 3Q10 4Q10 1Q11

80 86

1420

Mar.10 Mar.11

Customer

franchise

Trading income

Source of revenue (%)

+2%

-35%

Stronger customer

franchise

Yr-on-yr

change


Wholesale Banking: income statement

(Constant €m)

1Q11 / 4Q10

-15.5%Net Interest Income 365 - 43 -10.6%

Wholesale Banking Accum.

Growth

1Q11 / 1Q10

1Q11 Abs. % %

45

53.9%Net Attributable Profit RESULTADO ATRIBUIBLE AL GRUPO364 - 51 -12.2%

64.2%Income Before Tax RESULTADOS ANTES DE IMPUESTOS552 - 70 -11.3%

20.5%

18.5%

Operating Income MARGEN NETO580 - 53 -8.3%

-15.5%

Gross Income MARGEN BRUTO811 - 18 -2.2%

Net Interest Income MARGEN DE INTERESES365 - 43 -10.6%


Outlook for coming quarters

Emerging Strong growth and record earnings

46

Developed

Euro zone: net interest income in slow decline until 2Q11/3Q11

Euro zone plus USA: consolidation of the improvement in risk premium


Á n g e l C a n o , B B V A ' s P r e s i d e n t & C O O

First quarter results 2011

47

May 5th 2011

first quarter results 2011...4.8 4.8 4.8 4.9 4.9 npa ratio bbva spain vs local peer group (1) mar.11...

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